The U.S. Small Business Administration | SBA.gov - Loan Programshttps://www.sba.gov/category/about-sba-navigation-structure/sba-programs/financial-assistance/loan-programs
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Financing your business requires research to find the most appropriate funding model. SBA offers a variety of loan programs for very specific purposes. Take some time to study the programs described in this section to see if you qualify to participate.</p>
enAbout the MicroLoan Program https://www.sba.gov/offices/headquarters/ofa/resources/11432
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The Microloan Program provides small, short-term loans to small business concerns and certain types of not-for-profit child-care centers. The SBA makes funds available to specially designated intermediary lenders, which are nonprofit community-based organizations with experience in lending as well as management and technical assistance. These intermediaries make loans to eligible borrowers. The maximum loan amount is $50,000, but the average microloan is about $13,000.</p>
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How MicroLoan Funds May Be Used</h2>
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Microloans may be used for the following purposes:</p>
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Working capital</p>
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The purchase of inventory or supplies</p>
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The purchase of furniture or fixtures</p>
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The purchase of machinery or equipment.</p>
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Proceeds from a microloan cannot be used to pay existing debts or to purchase real estate.</p>
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Thu, 18 Nov 2010 03:21:31 +0000mbufforddrt11432 at https://www.sba.govCDC/504 Programhttps://www.sba.gov/offices/district/ofa/resources/11431
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The CDC/504 loan program is a long-term financing tool, designed to encourage economic development within a community. The 504 Program accomplishes this by providing small businesses with long-term, fixed-rate financing to acquire major fixed assets for expansion or modernization.</p>
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A Certified Development Company (CDC) is a private, nonprofit corporation which is set up to contribute to economic development within its community. CDCs work with SBA and private sector lenders to provide financing to small businesses, which accomplishes the goal of community economic development. Typically, a CDC/504 project includes:</p>
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A loan secured from a private sector lender with a senior lien covering up to 50 percent of the project cost</p>
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A loan secured from a CDC (backed by a 100 percent SBA-guaranteed debenture) with a junior lien covering up to 40 percent of the project cost</p>
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A contribution from the borrower of at least 10 percent of the project cost (equity)</p>
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This type of setup means that 100% of the project cost is covered either by contribution of equity by the borrower, or the senior or junior lien.</p>
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Thu, 18 Nov 2010 03:18:10 +0000mbufforddrt11431 at https://www.sba.govVenture Capital Program (Equity Financing)https://www.sba.gov/offices/district/ofa/resources/11430
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<div class="field-item even" property="content:encoded"><p>Venture capital is a type of equity financing that addresses the funding needs of entrepreneurial companies that for reasons of size, assets, and stage of development cannot seek capital from more traditional sources, such as public markets and banks. Venture capital investments are generally made as cash in exchange for shares and an active role in the invested company.</p>
<p>Venture capital differs from traditional financing sources in that venture capital typically:</p>
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<p>Focuses on young, high-growth companies;</p>
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<p>Invests equity capital, rather than debt;</p>
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<p>Takes higher risks in exchange for potential higher returns;</p>
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<p>Has a longer investment horizon than traditional financing;</p>
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<p>Actively monitors portfolio companies via board participation, strategic marketing, governance, and capital structure.</p>
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</ul><p>SBA provides venture capital through the <a href="/content/sbic-program">Small Business Investment Company (SBIC)</a> Program, a unique public-private investment partnership. SBA itself does not make direct investments. It works with SBICs, which are privately owned and managed investment firms licensed by SBA to provide financing to small businesses with private capital they raise and with funds borrowed at favorable rates through SBA.</p>
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Thu, 18 Nov 2010 03:15:49 +0000mbufforddrt11430 at https://www.sba.gov7(a) Loan Program https://www.sba.gov/offices/district/ofa/resources/11428
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The 7(a) Loan Program is the SBA’s primary program to help start-up and existing small businesses obtain financing when they might not be eligible for business loans through normal lending channels. The name comes from section 7(a) of the Small Business Act, which authorizes the SBA to provide business loans to American small businesses. The SBA itself does not make loans, but rather guarantees a portion of loans made and administered by commercial lending institutions.</p>
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7(a) loans are the most basic and most commonly used type of loans. They are also the most flexible, since financing can be guaranteed for a variety of general business purposes, including working capital, machinery and equipment, furniture and fixtures, land and building (including purchase, renovation and new construction), leasehold improvements, and debt refinancing (under special conditions). Loan maturity is up to 10 years for working capital and generally up to 25 years for fixed assets.</p>
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Most American banks participate in the program, as do some non-bank lenders, which expands the availability of loans. Participating lenders agree to structure loans according to the SBA's requirements, and apply and receive a guaranty from the SBA on a portion of this loan. The SBA does not fully guarantee 7(a) loans—the lender and the SBA share the risk that a borrower will not be able to repay the loan in full. The guaranty is against payment default; it does not cover imprudent decisions by the lender or misrepresentation by the borrower.</p>
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Thu, 18 Nov 2010 03:06:55 +0000mbufforddrt11428 at https://www.sba.govGuaranteed Loan Programs (Debt Financing)https://www.sba.gov/offices/district/ofa/resources/11422
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Banks and other lending institutions offer a number of SBA guaranteed loan programs to assist small businesses. While SBA itself does not make loans, it does guarantee loans made to small businesses by private and other institutions.</p>
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Below is an overview of SBA’s guaranteed loan programs. For more information, click on the name of the program.</p>
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<a href="/content/7a-loan-program">7(a) Loan Program</a>:<br />
This is SBA’s primary and most flexible loan program, with financing guaranteed for a variety of general business purposes. It is designed for start-up and existing small businesses, and is delivered through commercial lending institutions.</p>
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The major types of 7(a) loans are:</p>
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<a href="/content/express-programs">Express Programs</a></p>
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<a href="/content/export-loan-programs">Export Loan Programs</a></p>
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<a href="/content/rural-lender-advantage">Rural Lender Advantage Program</a></p>
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<a href="/content/special-purpose-loans-program">Special Purpose Loans Program</a></p>
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<a href="/content/cdc504-loan-program">CDC/504 Loan Program</a>:<br />
This program provides long-term, fixed-rate financing to acquire fixed assets (such as real estate or equipment) for expansion or modernization. It is designed for small businesses requiring “brick and mortar” financing, and is delivered by CDCs (Certified Development Companies)—private, non-profit corporations set up to contribute to the economic development of their communities.</p>
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<a href="/content/microloan-program">Microloan Program</a>:<br />
This program provides small (up to $35,000) short-term loans for working capital or the purchase of inventory, supplies, furniture, fixtures, machinery and/or equipment. It is designed for small businesses and not-for-profit child-care centers needing small-scale financing and technical assistance for start-up or expansion, and is delivered through specially designated intermediary lenders (nonprofit organizations with experience in lending and technical assistance).</p>
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<a href="/content/disaster-loans">Disaster Assistance Loan Program</a>:<br />
This program provides low-interest loans to homeowners, renters, businesses of all sizes and most private non-profit organizations to repair or replace real estate, personal property, machinery and equipment, inventory and business assets that have been damaged or destroyed in a declared disaster. </p>
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Thu, 18 Nov 2010 02:27:05 +0000mbufforddrt11422 at https://www.sba.govGuaranteed Loan Programs (Debt Financing)https://www.sba.gov/offices/district/ofa/resources/11421
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<div class="field-item even" property="content:encoded"><p>Banks and other lending institutions offer a number of SBA guaranteed loan programs to assist small businesses. While SBA itself does not make loans, it does guarantee loans made to small businesses by private and other institutions.</p>
<p>Below is an overview of SBA’s guaranteed loan programs. For more information, click on the name of the program.</p>
<p><a href="/content/7a-loan-program">7(a) Loan Program</a>:<br />
This is SBA’s primary and most flexible loan program, with financing guaranteed for a variety of general business purposes. It is designed for start-up and existing small businesses, and is delivered through commercial lending institutions.</p>
<p>The major types of 7(a) loans are:</p>
<ul><li>
<p><a href="/content/express-programs">Express Programs</a></p>
</li>
<li>
<p><a href="/content/export-loan-programs">Export Loan Programs</a></p>
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<p><a href="http://www.sba.gov/content/rural-lenders">Rural Lender Advantage Program</a></p>
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<p><a href="http://www.sba.gov/category/navigation-structure/loans-grants/small-business-loans/sba-loan-programs/7a-loan-program/special-purpose-loans-program">Special Purpose Loans Program</a></p>
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</ul><p><a href="/content/cdc504-loan-program">CDC/504 Loan Program</a>:<br />
This program provides long-term, fixed-rate financing to acquire fixed assets (such as real estate or equipment) for expansion or modernization. It is designed for small businesses requiring “brick and mortar” financing, and is delivered by CDCs (Certified Development Companies)—private, non-profit corporations set up to contribute to the economic development of their communities.</p>
<p><a href="/content/microloan-program">Microloan Program</a>:<br />
This program provides small (up to $35,000) short-term loans for working capital or the purchase of inventory, supplies, furniture, fixtures, machinery and/or equipment. It is designed for small businesses and not-for-profit child-care centers needing small-scale financing and technical assistance for start-up or expansion, and is delivered through specially designated intermediary lenders (nonprofit organizations with experience in lending and technical assistance).</p>
<p><a href="http://www.sba.gov/category/navigation-structure/loans-grants/small-business-loans/disaster-loans">Disaster Assistance Loan Program</a>:<br />
This program provides low-interest loans to homeowners, renters, businesses of all sizes and most private non-profit organizations to repair or replace real estate, personal property, machinery and equipment, inventory and business assets that have been damaged or destroyed in a declared disaster. </p>
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Thu, 18 Nov 2010 02:25:00 +0000mbufforddrt11421 at https://www.sba.gov